Heico Corp. (HEI) acquires stakes in Ridge Engineering and The Bechdon Company

0

News and research before you hear about it on CNBC and others. Claim your 1-week free trial for Street Insider Premium here.


HE IHEICO Corporation (NYSE: HEI) today announced that its Flight Support Group has entered into a purchase agreement to acquire 89% of Ridge Engineering, Inc. (“Ridge”) and The Bechdon Company, Inc. (“Bechdon” ) (together, the “Companies”) for cash at closing, plus any additional cash consideration payable if certain post-closing profit levels are achieved. Additional financial details were not disclosed.

HEICO expects the acquisitions to increase its profits in the first year after closing.

Founded in 1967, Ridge, based in Hampstead, Maryland, is a leader in close-tolerance machining and brazing of large parts in critical defense and aerospace applications.

Bechdon, based in Upper Marlboro, Maryland, was founded in 1966 and provides machining, fabrication and welding services for aerospace, defense and other industrial applications. Bechdon is a key Ridge subcontractor for subcomponents used in Ridge’s final assemblies.

David Tracey, whose father Robert founded Ridge, will continue to lead the company in his current role as president, along with Rick Troutman, Ridge’s chief financial officer. Together, Mr. Tracey and Mr. Troutman will own 11% of the shares of the companies.

Ridge operates an 87,500 square foot facility and is constructing an 87,000 square foot facility on adjacent land to support the expected growth of the business. Bechdon currently operates a 42,000 square foot facility. Ridge and Bechdon together employ 196 team members, and HEICO said it does not expect significant staff turnover as a result of the acquisition.

Laurans A. Mendelson, President and CEO of HEICO Corporation, as well as Eric A. Mendelson, Co-President of HEICO and CEO of HEICO Flight Support Group, jointly said: “Over the past 31 We have visited countless aerospace manufacturing facilities over the years, and never before have we seen such specialized machining and brazing capabilities under one roof that provide essential products to the aerospace industry. We welcome David, Rick and the exceptionally skilled team at Ridge and Bechdon in the HEICO family of entrepreneurs run by them. “

David Tracey, President of Ridge, said, “Ridge Engineering, founded in 1967, has enjoyed two generations of steady growth and a long history of meeting the critical demands of our customers. We are delighted to team up with HEICO, which will allow us to launch to the next level requirements of our industry. HEICO is the perfect home for Ridge and Bechdon, and we are honored to be part of the HEICO family.

The transaction is subject to authorization under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. Closing is expected promptly after receipt of the antitrust clearance and satisfaction of the closing conditions.

HEICO Corporation is mainly engaged in the design, production, maintenance and distribution of products and services to certain niche segments of the aviation, defense, space, medical, telecommunications and electronics through its Hollywood, Florida-based Flight Support Group and its Miami, Florida-based Electronic Technology Group. HEICO’s customers include the majority of airlines and overhaul shops around the world, as well as numerous defense and space contractors and military agencies around the world, in addition to medical equipment manufacturers. , telecommunications and electronics. For more information about HEICO, please visit our website at www.heico.com.


Source link

Leave A Reply

Your email address will not be published.